Providence Short-Term Rental Regulations

Last verified: 2026-06-18
TL;DR
Providence requires Temporary Use Permit (fee varies) and the property must be your primary residence. Combined tax rate is 14%. No annual day limit.
Disclaimer
This information is provided for general informational purposes only and does not constitute legal, tax, or regulatory advice. Short-term rental regulations change frequently. Always verify current requirements with your local government before listing your property or making investment decisions.
Key Requirements at a Glance
Permit ✓ Required — Temporary Use Permit (fee varies)
Primary Residence ✓ Required
Annual Day Limit No limit
Tax Rate 14%
Max Penalty $1,000 (statewide DBR non-registration, non-compliance over 60 days) per violation
Insurance Not required

New to short-term rentals? Jump to the compliance checklist →

Permit & Licensing

Temporary Use Permit

FeeAmount
Initial costfee varies
Renewalfee varies

The property must be your primary residence. This means investment properties are not eligible for this permit type.

Application Process

For an entire dwelling unit used as a short-term rental, apply for a temporary use permit through the City of Providence Department of Inspection and Standards; the permit must be renewed annually. Private bedroom rentals where the owner resides in the dwelling during the rental do not require a temporary use permit. Separately, the property must be registered statewide with the Rhode Island Department of Business Regulation if it is listed on a third-party hosting platform.

Tax Obligations

TaxRateAuthority
State Sales Tax 7% Rhode Island Division of Taxation
State Hotel Tax (single-room rentals) or Whole-Home STR Tax (whole-unit rentals) — whichever applies 5% Rhode Island Division of Taxation
Local Hotel Tax 2% Rhode Island Division of Taxation

Combined rate: 14% of gross rental income.

Collection: Owner/operator collects and remits the 7% state sales tax, the 5% whole-home short-term rental tax (or 5% state hotel tax for single-room rentals), and the 2% local hotel tax to the Rhode Island Division of Taxation; hosting platforms collect and remit on behalf of hosts where applicable. Taxes are based on the date of occupancy.

Rental Limits

Providence does not impose an annual cap on the number of nights you can rent. Individual-stay rule: Fewer than 28 consecutive calendar days (definition of short-term rental).

Zoning & Restrictions

Owner-occupied dwellings may be used as short-term rentals in the R-1, R-1A, R-3 and R-4 zones; in all other zones where residences are allowed, dwellings can be used as short-term rentals. Non-owner-occupied whole-unit short-term rentals are not permitted in these residential zones.

Insurance & Safety

Insurance

Providence does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

Penalties for Non-Compliance

Maximum penalty: $1,000 (statewide DBR non-registration, non-compliance over 60 days) per violation.

Platform Requirements

Compliance Checklist

Follow these steps to legally operate a short-term rental in Providence:

  1. Confirm eligibility. The property must be your primary residence. Investment properties are not eligible.
  2. Meet safety requirements. Visible printed materials with diagrams of all exits. Clearly marked fire extinguishers.
  3. Apply for Temporary Use Permit. Submit application. Contact city for fee details.
  4. Register for tax accounts. Set up lodging tax accounts with Rhode Island Division of Taxation.
  5. Display your permit number. Include your permit/license number in all listings and advertisements.
  6. Collect and remit taxes. 14% on all bookings.
  7. Renew annually. Contact city for renewal fee details.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Providence?
Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Providence requires a Temporary Use Permit.
Does Providence require a short-term rental to be your primary residence?
Yes. Every Providence permit type requires the property to be your primary residence, so investment or non-owner-occupied rentals generally are not eligible.
How many days a year can you short-term rent in Providence?
Providence does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.
What taxes do you pay on a short-term rental in Providence?
Short-term rental stays in Providence are subject to a combined 14% in lodging taxes. This combines 7% State Sales Tax + 5% State Hotel Tax (single-room rentals) or Whole-Home STR Tax (whole-unit rentals) — whichever applies + 2% Local Hotel Tax. The host is responsible for collecting and remitting them.
What happens if you run a short-term rental without a permit in Providence?
Operating without a permit can cost up to $1,000 (statewide DBR non-registration, non-compliance over 60 days).

Official Sources

  1. Short-Term Rental Regulations in Providence | City of Providence
  2. Short-Term Rentals | Dept. of Business Regulation - State of Rhode Island
  3. Notice 2025-09: To all Hotels and Short-Term Rentals | Rhode Island Division of Taxation
  4. 230-RICR-30-20-4 Short-Term Rental Property Registration | Rhode Island Department of State